21 May Housing Subsidy Explained in Simple Terms

The dream of homeownership is one that many South Africans can relate to. The fact is, most people do not fit the mold to qualify for a traditional home loan. This should not place your dream on hold or cause you to give up trying. Housing subsidies like the Financial Linked Individual Subsidy Programme/FLISP (now called First Home Finance/FHF) are designed specifically for potential buyers who need a hand.

A quick look at property prices is enough to make anyone feel discouraged about owning a home. With high deposits, costly bond repayments, and everyday living expenses constantly rising, it can feel out of reach. Think of a housing subsidy as a top-up to your existing funds. It makes that monthly bond repayment a little less daunting and lets you consider properties you might have thought were out of reach.

At FirstStep Housing, we provide the support you need to open the door to new possibilities. We can assist you with the First Home Finance application process. Our team have plenty of knowledge and insight to share, to make your journey to homeownership as easy as possible.

What Does a Housing Subsidy Mean?

A housing subsidy, explained in simple terms, refers to a financial contribution from the government to assist individuals in buying their first homes. This makes it possible for low to middle-income earners with South African residency to own property. Applying for government-subsidy housing can be complicated and time-consuming. Our team has worked in the property industry for many years, combining experience with expertise for the best results.

We offer a professional service that handles your First Home Finance application and everything in between. From filling in application forms to following up and securing the best bond prices, FirstStep Housing takes the stress out of the process. Once you have found your dream home and secured your bond, there are still important legal steps to follow – homeownership deeds and bond transfers. Again, FirstStep Housing can guide you through this.

How Do I Know If I Qualify?

Our FirstStep Housing team empowers you to live the life you have been working towards. If you are 18 or older, have South African residency, live with a partner or dependents, and have not owned property before, you are a great candidate for First Home Finance. There is also an income bracket to consider: currently, it is between R3,500 and R22,000 per month combined.

What Do I Need to Apply?

We ensure you benefit from the FLISP application made easy: A step by step guide. To help you through the FLISP application process, we’ll need the following documents and information:

• Details of the property you intend to purchase
  Please note: You cannot apply for the FLISP subsidy without a signed Offer to Purchase (OTP) or Sale Agreement. This means you must first identify the property you wish to buy. Once you’ve found the right home, we’ll assist in drafting the OTP and guiding you through the signing process.
• Identity Document for each prospective buyer
• Three months’ recent payslips for all prospective buyers
• Birth certificates for all minor dependants living in your household
• Marriage certificate, if applicable
• Divorce order and settlement agreement, if applicable

Ready to take the first steps towards owning your dream home? Do not let the complexities of the First Home Finance process hold you back. Let FirstStep Housing help you achieve your goal – and start living your best life in a home you can truly call your own. Apply now to get started.